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Date Posted: February 12 2006

U.S. construction ends 2005 up 10%
The final numbers for 2005 are in, revealing that total U.S. construction advanced 10 percent from 2004 to $651.4 billion, according to McGraw-Hill Construction. That was a slight dip from the 11 percent increase reported for 2004, but well above the nation's growth rate, ranging from 2-5 percent from 2001 to 2003.

In its report dated Jan. 30, McGraw-Hill said the pattern for total construction over the course of
2005 showed a sluggish first quarter, followed by strengthening activity in the second and third quarters, and then a mild loss of momentum in the fourth quarter.

"Higher materials prices appeared to dampen the nonresidential sector at the outset of 2005, as developers deferred and redesigned projects to deal with rising costs," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill. "At the same time, market fundamentals
such as occupancies and rents improved, and this helped nonresidential building to regain an upward trend as the year progressed. The 2005 construction market also featured a robust performance by single-family housing, which established a new annual high.

"By year's end, though, homebuilding began to ease back, and the extent to which this cooling off continues will be a major factor shaping the 2006 construction market."

The annual statistics for total construction in 2005 revealed growth in all five of the nation's major regions. The Midwest (4 percent growth) had the smallest increase.

Figures released Feb. 1 by the Associated General Contractors of America said that construction spending in December set a record for the sixth straight month - it was up 1 percent from the previous month.

"The best-performing private nonresidential segment in 2005 was manufacturing construction, with a 21 percent year-over-year gain," said AGC chief economist Ken Simonson said. "I expect another strong year in 2006." He added that growth in 2005 was distributed "among major construction segments."

Gleason tapped for safety standards post
Patrick "Shorty" Gleason, president of the Michigan State Building and Construction Trades Council, was appointed earlier this month to the Michigan Construction Safety Standards Commission. He was appointed by Gov. Jennifer Granholm to represent individuals actively engaged in construction operations on the employee level for a term expiring March 18, 2007.

He succeeds Tom Boensch who has resigned. The Construction Safety Standards Commission provides rules and establishes safety standards for construction operations to protect the life and safety of construction workers in Michigan.

This appointment will be confirmed unless disapproved by the Senate within 60 days.